Gas-based plants to be informed 2 weeks in advance for power generation schedule

As summer temperatures start hitting north, the Power Ministry has issued directions for gas-based power plants (GBS) to include a 14 day advance notice for the number of days they are required to generate electricity in a week.

The Ministry issued directions to GBSs under Section 11 of the Electricity Act, 2003, to ensure maximum generation during the peak summer months.

“India’s electricity demand is witnessing a sustained increase, primarily driven by economic growth and further accentuated during periods of elevated temperatures and peak demand. Also, the Indian Meteorological Department (lMD) has predicted above normal maximum temperatures over most parts of the country during the 2025 hot weather season (till June 2025),” the Ministry said.

Directions to GBS

As per directions by the Ministry, Grid India will inform GBSs about the expected high demand and stress days in advance so that Gencos can arrange for natural gas as required. It will be based on a monthly assessment of power demand.

“Grid India shall notify to the GBSs the expected number of days they are required to generate during a week, at least fourteen (14) days in advance. The GBSs notified and scheduled by Grid India on D-1 basis shall be guaranteed for dispatch at a minimum of 50 per cent capacity round-the-clock during the designated high-demand period,” it added.

Gas-based plants will first offer their power to the power purchase agreement (PPA) holders as per the terms and conditions.

In cases where a GBS has PPAs with multiple discoms, if one of the discom fails to schedule any portion of the power as per its PPA, the unutilised power will first be offered to other PPA holders.

lf the power is not scheduled by any of the PPA holders, any other discom may schedule such capacity. lf no discom schedules the power, the GBS shall then offer such power in the power market.

“Any surplus capacity shall be made available to Grid India to provide grid support and dispatch would be as per real time grid requirement,” the Ministry directions said.

Tariffs

On tariffs, the Ministry said that GBSs holding PPAs with Discoms shall offer their capacity at the Energy Charge Rate (ECR) determined by the appropriate commission.

GBSs not tied to PPAs must offer their capacity on the basis of the benchmark ECR determined by a committee headed by the Chairperson of the Central Electricity Authority (CEA), unless there is a mutually agreed price.

The committee’s responsibility shall be to ensure that the benchmark rates for procured power cover all prudent costs incurred by GBSs, including natural gas price, transportation costs, boil-off charges, LC charges, customs duties, insurance, re-gasification charges, VAT/ local taxes, etc.

The benchmark rates shall be reviewed every 15 days, taking into consideration the change in the price of natural gas, transport costs etc. The committee may also make recommendations for the effective implementation of these directions, the Ministry said.

“The GBSs shall offer the power in the power exchanges/other market segments or for dispatch by Grid India for grid support at a rate not more than 120 per cewnt of the ECR plus intra-state transmission charges as applicable,” it added.

ln case of the GBSs with PPAs, the realisation above the ECR shall first go to meet the fixed costs. The liability for payment of fixed costs, to the extent not realised from sale in the market or dispatch for grid support, shall remain with the PPA holders as per the PPA.

If the GBSs are scheduled for grid support they shall be compensated at the offer price.

Published on May 20, 2025